“Insurance Regulatory and Development Authority (Insurance Advertisements and Disclosure) Regulations, 2021” establish standards and guidelines for advertising practices and disclosures by insurance companies. Here is a detailed summary of the regulations:
1. Title and Commencement:
The regulations are officially titled as the “Insurance Regulatory and Development Authority (Insurance Advertisements and Disclosure) Regulations, 2021”.
They come into effect from the date of their publication in the official gazette.
2. Objectives:
To ensure that insurance advertisements are fair, truthful, clear, and not misleading to uphold the confidence of the public.
Advertisements should be consistent, ethical, and in simple language to facilitate informed decision-making by consumers.
3. Definitions:
Definitions are provided for terms such as “Authority,” “Advertisement,” “Insurance Advertisement,” “Invitation to inquire,” and “Invitation to contract,” among others, to standardize the understanding and application of these regulations.
4. Provisions for Advertisement Content:
Advertisements must not mislead or deceive consumers regarding the benefits, terms, or conditions of insurance products.
They must clearly distinguish factual data from projections and ensure that terms, benefits, and risks associated with the insurance products are presented clearly and prominently.
5.Compliance and Oversight:
Insurers are required to have a compliance officer responsible for overseeing advertisement practices.
An advertisement register must be maintained, documenting all advertisements and their dissemination.
Insurers must file advertisements with the Authority within seven days of their release.
6. Transparency and Disclosure:
Advertisements must disclose key information clearly, including the identity of the insurer and any significant conditions or risks associated with the products.
Mandatory disclosures must be made in a manner that is easily understandable to the average consumer.
7. Restrictions and Prohibitions:
Specific restrictions apply to misleading and deceptive advertisements.
Advertisements should not overstate the benefits, guarantee profits, or suggest approval by the Authority that is not given.
8. Penalties for Non-compliance:
The regulations outline penalties for insurers who fail to adhere to advertising standards, including the potential for fines, sanctions, or other corrective actions imposed by the Authority.
These regulations aim to protect consumers by ensuring transparency and honesty in insurance advertising, thus promoting trust in the insurance sector and helping consumers make informed decisions about insurance products.
